HomeMy WebLinkAbout2014-12-17 PACKET 04.L. REQUEST OF CITY COUNCIL ACTION COUNCI� AGENDA
MEETING ITEM # �
DATE 12/17/14 , �
�
PREPARED BY Finance Robin Roland
ORIGINATING DEPARTMENT STAFF AUTHOR
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COUNCI� ACTION REQUEST
Consider resolution approving transfer of $200,000 from the Future Economic Development
fund (aka the EDA trust fund) to the EDA Special Revenue Fund.
STAFF RECOMMENDATION
Adopt resolution approving the transfer of $200,000 from the Future Economic Development
fund (aka the EDA trust fund) to the EDA Special Revenue Fund:
BUDGET IMPLICATION
BUDGETED AMOUNT ACTUAL AMOUNT
ADVISORY COMMISSION ACTION
DATE REVIEWED APPROVED DENIED
❑ PLANNING ❑ ❑ ❑
❑ PUBLIC SAFETY ❑ ❑ ❑
❑ PUBLIC WORKS ❑ ❑ ❑
❑ PARKS AND RECREATION ❑ ❑ ❑
❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑
❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑
❑ ❑ ❑ ❑
SUPPORTING DOCUMENTS
� MEMO/LETTER:
� RESOLUTION:
❑ ORDINANCE:
❑ ENGINEERING RECOMMENDATION:
❑ LEGAL RECOMMENDATION:
❑ OTHER:
ADMINISTRATORS COMMENTS: , ;
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City Administrator Date
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COUNCIL ACTION TAKEN: ❑ APPROVED ❑ DENIED ❑ OTHER
\\cocg-fs1\groups\finance\Council Items�2014\cc action EDA transfer cash.docx
Cottage
Grove
� Pride andProsperity Meet
To: Mayor and City Council Members
Ryan Schroeder, City Administrator
From: Robin Roland, Finance Director
Date: December 12, 2014
Subject: Consider transfer of funds from Future Economic Development Fund to EDA
Special Revenue Fund
Introduction/Discussion
In 2013, the EDA commenced operations of the Business Enterprise Center (B.E.C.). Significant up front
costs were incurred to transform the building at 7516 80th Street into leasable spaces. At the time of the
authorization of the BEC, the EDA acknowledged that additional funding would need to be available to
offset the costs and that the Future Economic Development Fund (aka EDA Trust fund) could be the
source of that funding.
Budgeted activity for 2014 included BEC and EDA operations. However, the reduction of the EDA fund
balance due to the forgiveness of an outstanding loan to River Oaks Golf Course combined with less
than anticipated revenues in 2014 has resulted in a negative cash balance. In order for operations to
continue into 2015, an infusion of cash to the EDA Special Revenue fund is necessary. Staff is proposing
a transfer of $200,000 from the Future Economic Development Fund.
In the future, an increase to the tax levy dedicated to the EDA should be considered to fund operations
and avoid the need for additional cash infusions.
Action Requested
Adopt the attached resolution authorizing a transfer of $200,000 from the Future Economic
Development fund to the EDA Special Revenue Fund
RESOLUTION N0. 14-
RESOLUTION APPROVING TRANSFER BETWEEN FUTURE ECONOMIC
DEVELOPMENT FUND AND EDA SPECIAL REVENUE FUND
WHEREAS, a transfer has been determined to be necessary to replenish cash in the
EDA Special Revenue fund.
NOW THERFORE BE IT RESOLVED, by the City Council of the City of Cottage Grove,
County of Washington, State of Minnesota, that the following interFund transfer be made:
From To Amount
286-Future Economic 285-EDA Special Revenue
Development Fund Fund $200,000
Passed this 17th Day of December, 2014.
Myron Bailey, Mayor
Attest:
Caron M. Stransky, City Clerk